Re: Record Clubs

On Thursday, January 23, 1997 at 12:00:00=E2=80=AFAM UTC-8, Amituo wrote:
> Why do record companies run "record clubs," those things you see
> advertised in magazines and Sunday-paper pullouts? Aren't they just
> undercutting their own profits? Some people seem to think that the offere=
d
> titles are excess stock, but I don't think that this is true as the CDs
> (or tapes, or LPs back in the day) don't have barcodes, and I believe tha=
t
> they have different catalog numbers. I don't think that the record compan=
y
> would print up new packaging for excess stock.
> It seems that with a lot of these record clubs, you get 8 CDs for free,
> with the obligation to buy one more. Granted, they have little overhead
> for these, and the prices are likely to be a bit higher than the local
> music store, but even so, it doesn't seem to add up. Especially since
> stores buy CDs at about $9 wholesale. (Again, granted, they get them from
> a distributor....) Selling retail seems like it'd be much more profitable
> than printing up different versions of products and then selling them at
> reduced cost.
> Maybe someone has a better idea of what the numbers are in this equation,
> and what the motives are?


I miss them, they were awesome. Still have all those cassettes.=20